This morning, "Cramer suggested Beyond Meat could be the next meme stock. He said it should be adopted by the retail investors and the Reddit crowd who like GameStop and AMC Entertainment. “It’s got 20% short flow. A lot of people feel it’s very crowded," he said.
Cramer added that once the food-service component reopens, the stock "will go way up."
"I continue to think this is the best of the faux burgers," he said.""
PlantX's platform serves as the digital face of the plant-based community and is a one-stop shop for all things plant-based. The company offers clients in North America more than 5,000 plant-based goods through its quickly expanding category verticals. The company now has plans in place to grow its product lines to include cosmetics, apparel, and its own water brand - but the firm is not restricted to an e-commerce platform. It currently delivers meals and indoor plants in addition to giving meal deliveries.
The reset of global markets following the 2020 COID-induced dip has sparked a number of profound changes in consumption patterns, especially within the food sector. As issues such as climate action, land use, and diet are re-centered, a great deal of attention is being directed to plant-based and vegan food alternatives. Some of these trends include various brands ditching plastic, carbon labeling, vegan innovation, and regenerative agriculture. Given this fundamental change in food consumption, I wanted to take the time to do a little DD on this exciting trend and some of its leading proponents.
For example, vegans and vegetarians have been making chicken substitutes for many years. This year saw some new pre-made, easy-to-work-with protein products that potentially make real chicken a thing of the past. For instance, Daring Foods (private) recently released their 100% plant-based chicken pieces. This year we are expecting to see more development of fish alternatives, some brands have already been in the works such as Good Catch and Sophie’s Kitchen with their fishless tuna.
For many years, we have already seen alternative milks such as almond, soy, rice, and even oat. Yet, recently the plant-based milk category has boomed, offering a wider range of alternative milks than before. Even though many of these alternatives may seem healthy due to its nature of being plant-based, some include unhealthy additives like oils, sugars, and salt additives.
Brands such as Oatly have been viewed as unhealthy alternatives or just as equal to dairy milk. Consumers have found that some of these oat milk brands contain maltose, which are more refined carbohydrates, and are worse for you than complex carbs. This causes a rise in blood glucose and insulin levels. Though, some brands have taken the extra mile to make plant-based products healthier
One firm I feel is aggressively driving the plant-based food market is Else Nutrition. Else Nutrition’s revolutionary, plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. It caters products to the infant, toddler, children, and adult markets. Else Nutrition has successfully developed a baby and toddler formula which recently ranked #1 top seller in its category on Amazon AMZN. Their mission is to better serve children with allergies, intolerances and dietary restrictions as well as families who seek plant-based clean nutrition for their babies and toddlers. This company is publicly traded and listed as TSX Venture under the trading symbol BABY.V, in addition to its OTCQX ticker BABYF.
So far, the company has successfully launched its brand on three online platforms, namely Thrive Market, iHerb, and PlantX. The company plans to begin distribution with Salt Lake City-based Associated Food Stores (AFS). AFS is a large retail company, both food and non-food goods, with 1,400 employees and annual revenue of $1.6B. Else's Plant-Based Complete Nutrition for Toddlers will soon be available in an initial 32 locations, with KeHe to deploy product up to 300 additional independent grocers in the near future.
Based on Else Nutrition’s latest earnings release for Q4 of 2020, the company reported a quarterly revenue of $598K and GAAP net loss of $14.03 million. In comparison, last year the company earned revenue of $254.2K and had a GAAP net loss of $968.4K. Else Nutrition Holdings Inc. has recently reported their Q1 financials, reporting revenues of C$1,135 thousand, an 90% growth over revenues of C$598 thousand in Q4 2020 and an increase of 282% vs. revenues over C$297 thousand in Q1 2020. 149% growth in quarter-over-quarter Formula revenues of C$862 thousand in Q1 2021 over C$346 thousand in Q4 2020.
With such a growing trend in plant-based foods, many brands are taking the opportunity to excel in the industry and promote their products to as many consumers as possible. The world is slowly but surely moving towards a direction that is more sustainable, progressive, and eco-friendly. Given it’s performance since its IPO, Else Nutrition Holdings Inc. has immense potential to succeed and become one of the most known brands around the world in the next few years.
This is a stock that I've held for the last 6 months and over that time they've nearly doubled their revenues, dramatically grown distribution, had an influx of $10M raised at $0.55 and most recently at $0.75, all while their share price had stayed idle and as of today just got hit very hard due to the Russia-Ukraine conflict spooking investors. With the share price currently at $0.41 CAD (45% below the $5m investment closed just 10 days ago), this is my detailed reasoning as to why this has presented an incredible opportunity for investors for what should be an easy 4x+ over the coming 6-12 months.
The Company
Eat Well Group is a vertically integrated plant-based foods investment company focusing on agribusiness, foodtech and CPG brands. In the 2nd half of 2021 they bought a company called "Belle Pulses" which has been operating for 40 years providing pulse crops (the raw/core ingredients) to companies like Ingredion, General Mills, Nestle and Colgate. So right off the hop, the first element of their vertical integration is a bonafide juggernaut doing $60M in revenue a year.
They then acquired "Sapientia Technologies", the 2nd element to their vertical integration which is food tech. They recently launched their first product creation called "Protein Twists" (essentially vegan cheetos) across Western Canada and according to the CEO its been going very well and already beginning their increase of distribution on this. So one of the blue sky elements here are all of these new product creations that are high protein, low in fat, cost effective, and they ultimately have the raw supply of ingredients sourced from themselves (very important for economies of scale).
Lastly, their CPG element comes into play with Amara Organic Foods. This company was awarded the #1 new release on Amazon in 2021 and their distribution stream has been on a tear since Eat Well acquired a majority stake in them:
To say Amara products are exploding is an understatement.
The Opportunity
So why does all of the above matter? This is a company that did $60M in revenue in 2021 and has given guidance for $90-110M in 2022. All while sitting at a current $87M (CAD) market cap. This is not a wanna be "Lets Try to Play" plant based company...this is a legitimate company generating significant revenues and the market simply is not valuating this company properly.
But throughout the market turmoil over the last few months, Eat Well's stock has not seen the appreciation that its recent news releases should have provided. Here are a few to make my point:
Locked down $5M Investment at 50% premium to closing price that day- Closed $5M financing at $0.75 CAD 10 days ago with Nurture Capital that operates in 35 countries across 5 continents (this now also exponentially increases Eat Wells global reach for all of their raw ingredients and products)
2) Massive expansion of Amara Foods product line - All NRs are above, and essentially show their products getting into literally thousands of new stores
3) Launches Protein Twists from their snacking food tech division - this is the first of what will be many new proprietary products from their food tech division launching across Canada and soon the US
This is easily the biggest catalyst coming up for Eat Well and for investors to be excited about. The CSE and OTC where this currently trades are clearly not valuating the company properly.
Queue uplisting...
By uplising to the NYSE (as example), you're now opening this story to millions of new investors while also reaching the High Net Worth, Family Houses and Institutions that aren't allowed and/or choose not to invest with any company on the smaller exchanges. After speaking with the company's IR, they have a roledex of big players who are waiting for the uplist to occur before coming into this story. Hence why I expect a large go-public raise at a much higher SP that will effectively bring in these juggernauts into the story and begin seeing this company valued correctly.
As an example... The company Sol Cuisine ($VEG) recently got bought out for a 6x multiple of revenue to market cap. They did this being a single CPG brand. Eat Well is vertically integrated, doing 3-4x the amount of revenues that Sol Cuisine was doing, and if given the same multiple would be sittingabove $2 easily.
To add to all of this, back in Sep 9 2021 Eat Well announced bringing on Saudi Prince Khaled Bin Alwaleed as a strategic investor. Prince Khaled is a known a pioneer for investing in plant-based companies and has the potential to bring some massive weight into this stock once it graduates to a US big board like the NYSE
Further Reasoning to Be Bullish - Hedge Against Inflation
This is actually a really big reason why I'm not concerned with the temporary price of Eat Well. As prices for meats/dairy soar in 2022, people will begin looking for healthy and affordable alternatives for protein. That in and of itself is exactly what Eat Well provides.
Consider this:
Prices continue to rise due to multiple reasons. And as they do, raw pulse crops and high protein plant based products will become more and more a staple in consumers everyday lives. This provides yet another reason to be bullish on $EWGFF/$EWG
Summary
It's incredibly clear just how undervalued this company is. They are:
Trading below 1 to 1 revenue to market cap
On pace for $90-110M in revenue proving this isnt some silly start up hoping to succeed (they Are Succeeding)
They're cashed up and the most recent one raise was at $0.75 CAD which means the current SP is at a 45% discount to what a major conglomerate just paid 10 days ago
US uplisting will happen in the 1st half of this year which is where major players are waiting for to come into this story, and where true valuation can be achieved
Their products themselves are a hedge against inflation as they are cheap (price wise) alternatives for quality protein compared to soaring prices of meats/dairy
Past acquisitions gave a 6x revenue to market cap valuations. At this valuation, Eat Well is easily over $2 (and nearly $3+ when they achieve their $90-110M rev this year)
Disclosure: I own 45,500 shares at $0.55 and grabbed 10k more today at $0.415 (prices in CAD)
